A Look Into Consumer Defensive Sector Value Stocks

What is a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Below is a list of notable value stocks in the consumer defensive sector:

1. Seneca Foods SENEA - P/E: 4.0
2. Ingles Markets IMKTA - P/E: 5.38
3. SpartanNash SPTN - P/E: 8.64
4. Graham Hldgs GHC - P/E: 7.64
5. Amcon Distributing DIT - P/E: 8.11

Most recently, Seneca Foods reported earnings per share at 1.62, whereas in Q3 earnings per share sat at 7.9. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ingles Markets's earnings per share for Q2 sits at 2.58, whereas in Q1, they were at 2.66. Most recently, the company reported a dividend yield of 1.11%, which has increased by 0.08% from last quarter's yield of 1.03%.

Most recently, SpartanNash reported earnings per share at 0.56, whereas in Q4 earnings per share sat at 0.43. Its most recent dividend yield is at 3.99%, which has decreased by 0.23% from 4.22% in the previous quarter.

Graham Hldgs has reported Q1 earnings per share at 4.18, which has decreased by 63.27% compared to Q4, which was 11.38. Its most recent dividend yield is at 0.97%, which has decreased by 0.01% from 0.98% in the previous quarter.

Amcon Distributing has reported Q3 earnings per share at 6.48, which has increased by 49.65% compared to Q2, which was 4.33. Its most recent dividend yield is at 0.43%, which has decreased by 0.08% from 0.51% in the previous quarter.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.